swot sonykanika
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SWOT
Understanding SWOT Analysis
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What¶s Coming Up
What is SWOT
SWOT Overview
Links with Strategy
Strengths
Weaknesses
Opportunities
Threats Examples
After your SWOT
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What is SWOT
SWOT is a business or strategic
planning technique used to summarise
the key components of your strategicenvironments.
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Your Three Strategic Environments
Your three strategic environments are
Internal Environment
Industry Environment Macro Environment
Sometimes the last two are combined andcalled your external environment
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So, What is SWOT
SWOT is a summary of your
Strengths
Weaknesses
Opportunities
Threats
Internal
External
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Link to Strategy
Strategic
Analysis
Strategic
Choice
StrategicImplementation
Strategic
Control
The Four Step Strategic Planning Process
SWOT
Your SWOT Analysis
will summarise your
Strategic Analysis
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Strengths
Strength Defined: A strength is a corecapability of your business where your business have an advantage over your
competitor(s), which your customersvalue i.e. you passed the better thanyour competitors test.
You will find your strengths only whencompleting your internal analysis.
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Weaknesses
Weakness Defined: A weakness is a core
capability of your business where your
competitor(s) have an advantage over
your business, which your customers
value i.e. you failed the better than your
competitors test.
You will find your weaknesses only whencompleting your internal analysis
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Opportunities
Opportunity Defined: An opportunity is anenvironmental condition in your macro or industry environments that can improve
your organizations competitive positionrelative to that of your competitors.
You will find your opportunities when
completing your industry environmentanalysis and your macro environmentanalysis
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Threats
Threat Defined: A threat is a forecast
environmental condition that is out of
your control and has the potential to
harm your businesses profitability.
You will find your threats when completing
your industry environment analysis and
your macro environment analysis
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Example - Strengths
Tangible Strengths
Plant and equipment
Unique or market leading products
Cost advantages
Intangible Strengths
Strongly recognized brand portfolio
Your reputation Patents or proprietary products
Managerial experience
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Example - Weaknesses
Tangible Weaknesses
Old plant and equipment
Narrow product line Insufficient financial resources
Intangible Weaknesses
Weak or unrecognised brand
Poor customer relationships
Lack of industry knowledge
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Example - Opportunities
Industry Opportunities
Expand product range
Diversify Vertical integration (forward or backward)
Export or increase geographic cover
Macro Opportunities
Favourable legislative changes
Positive economic outlook
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Example - Threats
Industry Threats
Low cost imports
Substitute products Market decline
Macro Threats
Exchange rates
Demographic changes
Increasing regulation
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After SWOT
After completing your SWOT we will
encourage you to identify the SWOT
items that are not already being
addressed by your current strategy.
This will help you to determine how much if
any change is required to your current
strategy.
Web Link ± After SWOT